How to sell a reverse mortgage

Other People Are Reading

Instructions

Make sure that you understand the fine print in your contract. Before selling your home, make sure you understand the total cost. Some lenders assess thousands of dollars in fees depending on the situation. If you are having difficultly understanding the contract restrictions, contact a local attorney for assistance.

Discuss the reverse mortgage with your agent. She may be able to give you some extra guidance with the process. If you haven't selected an agent yet, seek one with this experience.

Find out how much money will be due at closing. When you sell your home, you will often need to repay the loan and fees within 30 days. Since every lender is different, make sure to

check with your financial institution to avoid late fees.

Make sure all liens are removed from the property. When the home is sold, have your real estate agent check to make sure lender liens are removed from the home. This will prevent issues when shopping for a new home.

Consider purchasing a new home immediately to avoid capital gains tax. Depending on your state, you may be able to avoid capital gains tax if you reinvest the profits from your home sale into another home. Check with your state's department of revenue for individual restrictions.

Consult the U.S. Department of Housing and Development if you have questions. They have many resources for individuals selling their reverse mortgages. Contact (202) 708-1112 for assistance.